FTC Files for Injunction as IML Shuts Down
Agency worries MLM defendants are dissipating assets.
In January 2017, a state judge preliminarily approved a settlement of a class-action lawsuit against Pro Armor. Among other things, the 2014 complaint alleges the company falsely markets UTV doors as having superior engineering and providing safety benefits when, according to plaintiffs, engineers were not involved in the design or manufacture of the doors and they do not provide safety benefits.
According to the settlement terms, class members with proof of purchase may receive a $60 gift card to use at www.ProArmor.com and class members without proof of purchase may receive a 10% discount coupon to use with a purchase at www.ProArmor.com (for a maximum discount of $60). In addition, the company agreed that it has stopped and will no longer advertise the UTV doors as providing safety benefits. A final fairness hearing is scheduled for August 15, 2017. (Allison et al v. LSI Products, Inc. dba Pro Armor, Case No. RIC 1405812, Superior Court of the State of California – County of Riverside)
Agency worries MLM defendants are dissipating assets.
Patrick Coffee, The Wall Street Journal
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